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July 5, 2021, 6:57 a.m. EDT

Why Tesla Shares May Rally Big Again

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Jul 05, 2021 (Baystreet.ca via COMTEX) -- For a few months, CEO Elon Musk preoccupied his Twitter /zigman2/quotes/203180645/composite TWTR +0.29% account with posts about bitcoin. Now that his attention is back on Tesla /zigman2/quotes/203558040/composite TSLA +0.33% and its latest Plaid release, the stock may recover.

In the second quarter, Tesla delivered 1,890 Model S/X units and almost 200,000 Model 3/Y vehicles. The 206,421 vehicle production in the period would leave around 5,000 units in inventory. Those deliveries are strong results. The pure-play EV firm continues to widen its lead against the traditional carmakers. For example, General Motors /zigman2/quotes/205226835/composite GM -0.37% still depends on gas-powered vehicles for revenue. It announced billions in spending to position itself in the EV market.

Ford Motor /zigman2/quotes/208911460/composite F +1.12% is similarly late in the game. The company announced an electric F-150, which sent the stock sharply higher. Yet Ford, like GM, will have to spend billions to catch up to Tesla. Tesla has a global distribution and supply chain. It has a supercharger network in all major locations. Its development costs are low because it has a strong demand for the existing line-up of vehicles.

Tesla shares tested the $600 level on at least three occasions in 2021 and bounced from there. Chances are good that the stock will find support on its rising 200-day moving average and trend higher throughout this summer.

The company reports quarterly results later this month.

COMTEX_389359797/2559/2021-07-05T06:57:22

Is there a problem with this press release? Contact the source provider Comtex at editorial@comtex.com. You can also contact MarketWatch Customer Service via our Customer Center.

/zigman2/quotes/203180645/composite
US : U.S.: NYSE
$ 62.47
+0.18 +0.29%
Volume: 9.81M
Sept. 17, 2021 4:04p
P/E Ratio
134.52
Dividend Yield
N/A
Market Cap
$49.71 billion
Rev. per Employee
$675,700
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/zigman2/quotes/203558040/composite
US : U.S.: Nasdaq
$ 759.49
+2.50 +0.33%
Volume: 28.20M
Sept. 17, 2021 4:00p
P/E Ratio
395.75
Dividend Yield
N/A
Market Cap
$749.43 billion
Rev. per Employee
$445,694
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/zigman2/quotes/205226835/composite
US : U.S.: NYSE
$ 51.33
-0.19 -0.37%
Volume: 45.12M
Sept. 17, 2021 4:00p
P/E Ratio
5.94
Dividend Yield
0.00%
Market Cap
$74.79 billion
Rev. per Employee
$790,226
loading...
/zigman2/quotes/208911460/composite
US : U.S.: NYSE
$ 13.55
+0.15 +1.12%
Volume: 76.34M
Sept. 17, 2021 4:02p
P/E Ratio
15.64
Dividend Yield
0.00%
Market Cap
$53.53 billion
Rev. per Employee
$683,570
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